UNIVERSITY   OF   CALIFORNIA 

COLLEGE   OF    AGRICULTURE 

AGRICULTURAL    EXPERIMENT   STATION 

BERKELEY,    CALIFORNIA 


COST  OF  WORK  HORSES 
ON  CALIFORNIA  FARMS 

R.  L.  ADAMS 


BULLETIN  401 

April,  1926 


UNIVERSITY  OF  CALIFORNIA  PRINTING  OFFICE 

BERKELEY,  CALIFORNIA 

1926 


Digitized  by  the  Internet  Archive 

in  2012  with  funding  from 

University  of  California,  Davis  Libraries 


http://www.archive.org/details/costofworkhorses401adam 


COST  OF  WORK  HORSES  ON  CALIFORNIA  FARMS 

K.  L.  ADAMS 


California  farmers  continue  to  rely  upon  horses  and  mules  as  a 
source  of  motive  power,  although  increasing  use  of  tractors  and  trucks 
is  tending  to  replace  horse-power  with  mechanical  power.  The  number 
of  horses  and  mules,  of  all  ages,  on  California  farms  and  ranges,  was 
reported  by  the  1920  Federal  Census  as  456,826  on  January  1,  1920. 
By  January  1,  1923,  the  total  number  was  estimated  at  401,000.* 

A  year  later  a  drop  of  16,000  was  recorded,  lowering  the  total  to 
385,000.  On  January  1,  1925,  a  further  drop  of  6000  was  reported, 
thus  further  lowering  the  total  number  of  horses  and  mules  to  379,000. 


STUDIES   OF   COSTS   OF    HORSE    LABOR    BY   THE    DIVISION    OF 
FARM    MANAGEMENT 

Notwithstanding  the  gradual  reduction  in  numbers  of  horses  and 
mules,  the  annual  cost  of  horse  and  mule  power  reaches  a  high  figure. 
Considerable  quantities  of  data  have  been  collected  by  the  Division 
of  Farm  Management,  which  appear  to  be  worthy  of  recording  for 
use  by  farm  managers  and  agricultural  economists  who  are  concerned 
with  plans  of  farm  organization,  details  of  farm  administration,  and 
costs  of  production  studies. 

The  data  were  collected  by  trained  investigators,  who  visited  each 
of  the  selected  farms,  and  there  filled  in  specially  prepared  blanks 
upon  which  were  recorded  pertinent  data  as  to  numbers  of  work 
animals,  values,  rates  of  depreciation  and  mortality,  methods  of 
handling,  cost  items,  and  inventories  of  buildings  and  equipment  used 
in  connection  with  the  work  horses.  Book  records  were  seldom  avail- 
able so  that  much  of  the  data  had  to  be  drawn  from  farmers'  estimates. 
All  items  were  carefully  considered,  detail  by  detail,  both  by  the 
investigator  and  in  making  the  office  calculations.  Only  complete 
records  taken  from  farmers  with  sufficient  experience  to  render  their 
judgment  above  reasonable  doubt  were  retained.  The  survey  method 
of  collecting  the  records  was  used,  and  a  sufficient  number  collected 
to.  safeguard  the  accuracy  of  the  findings. 


*  This  and  the  following  figures  of  horse  population  are  from  The  Cooperative 
Crop  Keporting  Service. 


UNIVERSITY    OF    CALIFORNIA EXPERIMENT    STATION 


TYPES    OF    FARMING    REPRESENTED    BY    RECORDS 

These  data  are  from  the  records  of  187  California  farms,  One 
hundred  forty  records  are  from  ranches  primarily  devoted  to  the  pro- 
duction of  field  crops  and  dairying :  The  other  47  from  farms  special- 
izing in  deciduous  fruit  production.  The  farms  from  which  the  records 
were  obtained  are  typical  of  the  farming  practices  and  equipment  in 
the  districts  where  they  were  taken.  The  dairy  and  field  crops  records 
were  gathered  in  twenty  counties.  The  majority  were  obtained :  Nine 
from  Del  Norte  and  Humboldt  counties ;  15  from  Marin  and  Sonoma 
counties ;  20  from  Alameda,  Contra  Costa,  Santa  Clara  and  San  Benito 
counties;  35  from  Sacramento  and  Yolo  counties;  32  from  San 
Joaquin,  Fresno,  Kings,  and  Kern  counties;  24  from  Los  Angeles, 
Orange,  San  Bernardino,  and  San  Diego  counties.  The  47  fruit  farm 
records  were  taken :  Ten  in  Santa  Clara  County,  8  from  Santa  Cruz 
County,  7  from  Solano  County,  9  from  San  Joaquin  County,  and  13 
from  Fresno  County. 

Collection  of  the  records  for  the  dairy  and  field  crops  ranches  was 
completed  by  April  1,  1923 ;  the  records  from  the  fruit  farms  were 
collected  during  July,  1923.  All  are  based  on  the  calendar  year  of 
1922. 

ITEMS    CONSTITUTING    COSTS    OF    HORSE    LABOR 

Annual  cost  of  horse  labor  is  a  composite  of  a  number  of  items. 
The  most  important  are  direct  expenditures  for  feed  and  care,  and 
indirect  costs  of  depreciation  and  mortality  and  of  interest  upon  the 
investment  in  horses.  Incidental  items  include  taxes,  occasionally 
insurance  and  the  cost  of  shelter  and  equipment. 

The  following  table  shows  a  commonly  accepted  basis  for  calculat- 
ing horse  labor  costs : 

Table  of  Items  Entering  Into  the  Calculations  of  Horse  Labor  Costs 

Operating  Costs  of  Horses: 

Feed  (hay,  grain,  pasture,  etc.) 

Bedding 

Chores    (feeding,   grooming,    cleaning,   stables,    supervising   when   on    pasture, 

pumping  water,  etc.) 
Shoeing 

Veterinary  services 
Taxes 
Insurance 


BULL.  401]         C0ST   0F   work    HORSES   ON    CALIFORNIA   FARMS  5 

Overhead  Costs  of  Horses:  Cost  of  Shelter  Utilized  by  Horses: 

Interest  on  investment  in  horses  Interest  on  investment 

Depreciation  of  horses  Depreciation 

Mortality  of  horses  Upkeep 

Taxes 

Insurance 

Cost  of  Equipment  Used  by  Horses   (harness,  curry  combs,  brushes,  barn  forks, 
shovels,  etc.) : 
Interest  on  investment 
Depreciation 
Eepairs 
Taxes 
Insurance 

The  total  of  these  items  gives  gross  cost.  Net  cost  is  determined  by 
deducting  from  the  gross  cost  credits  for  outside  work,  for  manure, 
and  for  value  of  colts  raised  to  weaning  age.  The  colt  values  are 
taken  at  the  net  value,  found  by  deducting  from  the  market  value 
all  costs  of  breeding,  care,  and  rearing  to  weaning  age. 

Net  cost — the  figure  sought — can  be  expressed  in  dollars  per  year, 
dollars  and  cents  per  work  day,  or  cents  per  work  hour. 

METHOD   OF    FIGURING    ITEMS   OF    COST 

To  obtain  basic  data,  feeds  were  worked  out  in  accordance  with  the 
kinds  used,  length  of  the  feeding  periods,  and  costs  of  feeds  at  current 
farm  prices.  If  bought  and  hauled,  farm  prices  consisted  of  the  pur- 
chase price  plus  hauling  cost.  If  farm-raised,  the  value  was  figured  at 
market  price  less  cost  of  preparing,  delivering,  and  selling  at  a  point 
where  market  price  could  be  obtained. 

Very  little  bedding  was  used,  other  than  waste  hay  from  the 
mangers.  If  straw  or  other  bedding  was  used,  a  charge  was  figured 
in  the  same  way  as  for  the  feed  costs. 

The  cost  of  chores  was  found  by  multiplying  the  average  time 
required  per  year  by  the  "going"  rate  of  wages.  The  going  rate  of 
wages  included  cash  wages  and  the  value  of  board,  housing  and  other 
perquisites. 

Shoeing,  veterinary  services,  taxes,  and  insurance  are  totals  of 
amounts  actually  expended. 

The  overhead  costs  of  horses  are  here  made  up  of  interest  at  6 
per  cent  on  the  current  investment  or  value  of  the  horses  studied; 
Depreciation,  determined  by  dividing  the  value  of  the  horses  when  at 
the  peak  of  their  usefulness  by  the  estimated  years  of  profitable  life ; 
and  mortality  figured  in  accordance  with  the  operators'  experience. 


6 


UNIVERSITY    OF    CALIFORNIA EXPERIMENT    STATION 


The  charge  for  shelter  is  based  on  the  quarters  actually  used  by  the 
horses.  It  is  made  up  of  interest  at  6  per  cent  on  the  current  invest- 
ment, depreciation  (found  by  dividing  the  initial  cost  of  the  structure 
by  the  number  of  years  of  probable  life)  ;  upkeep  (the  average  annual 
outlay  for  repairs,  painting,  and  similar  charges),  taxes,  and  insur- 
ance. 

The  charge  for  equipment  used  by  the  horse  department  is  figured 
similarly  to  that  employed  in  determining  the  charge  for  shelter. 

FINDINGS 

Cost  data  were  collected  for  812  work  horses  on  the  187  California 
farms  studied.  Six  hundred  sixty-five  head  were  on  140  dairy  and 
field  crops  farms,  ranging  in  number  per  farm  from  1  to  31  head  and 
averaging  4.3  per  farm.  One  hundred  forty-seven  were  on  47  orchard 
and  vineyard  farms,  ranging  in  numbers  per  farm  from  1  to  12  head 
and  averaging  3.1  per  farm.  The  classification  by  numbers  per  farm 
is  set  forth  in  the  following  table : 

TABLE  1 

Classification  Showing  Number  of  Work  Horses  per  Farm 


Farms  grouped  according  to  number  of  horses 

Number  of  horses  per  farm 

Dairy  and  field  crops  group 

Orchard  and  vineyard  group 

1 

6 

2 

2 

35 

25 

3 

19 

5 

4 

36 

10 

5 

14 

1 

6 

7 

1 

7 

2 

8 

7 

1 

9 

1 

1 

10 

2 

11 

2 

12 

5 

1 

16 

2 

26 

1 

31 

1 

140 

47 

The  majority  of  farms  in  both  groups  were  equipped  with  two, 
three,  or  four  horses  each,  with  the  data  indicating  a  tendency  toward 
either  two  or  four  horses. 


BULL.  401]         C0ST   OF    WORK    HORSES   ON    CALIFORNIA   FARMS  7 

Feed. 

Various  combinations  of  feeds  were  used.  The  majority  of  operators 
fed  nothing  but  hay  or  hay  and  pasture.  The  findings  are  set  forth 
in  table  2. 

TABLE  2 
Classification  of  Feeding  Methods 


Dairy  and  field  crops 
group 

Orchard  and  vineyard 
group 

All  farms 

Feeding  method 

Per 
cent  of 
farms 

in 
group 

Per 
cent  of 
horses 

in 
group 

Num- 
ber of 
hours  of 
work 
per 
horse 

Per 

cent  of 
farms 

in 
group 

Per 

cent  of 
horses 

in 
group 

Num- 
ber of 
hours  of 
work 
per 
horse 

Per 
cent  of 
farms 

Per 

cent  of 
horses 

Num- 
ber of 
hours  of 
work 
per 
horse 

Hay  onlv 

33 
31 
21 

15 

25 
31 
22 

22 

1574 
1487 
2130 

1639 

25 

6 

38 

30 

16 

7 
37 

40 

1256 
1767 
1237 

1386 

31 
25 
25 

19 

23 

27 
25 

25 

1535 

Hay  and  pasture 

Hay  and  grain 

1483 

1889 

Hay,  grain,  and 
pasture.... 

1467 

Amounts  fed  varied  with  different  operators  and  in  different  locali- 
ties, the  methods  depending  somewhat  on  available  pasture,  proportion 
of  purchased  feeds,  current  costs,  and  amount  of  heavy  work  required 
of  the  teams.    The  table  gives  an  idea  of  feeding  practice. 

TABLE  3 

Average  Amounts  of  Feeds  Used  per  Horse  per  Year 


Kind  and  amount  of  feed 


Hay 

Hay 

Grain 

Hay 

Pasture 

Hay 

Grain 

Pasture 


Dairy  and 

field  crops 

group 


6  tons 

5.4  tons 
903  lbs. 

4.3  tons 
5. 1  mos. 

3.6  tons 
631  lbs. 
6. 1  mos. 


Orchard  and 

vineyard 

group 


6  tons 

6.8  tons 
577  lbs. 

4.3  tons 
4.3  mos. 

5.9  tons 
717  lbs. 
3.8  mos. 


All  farms 


6  tons 

5.9  tons 
780  lbs. 

4.3  tons 
5  mos. 

4.5  tons 
666  lbs. 
5.  2  mos. 


All  methods  of  feeding  considered,  horses  used  on  orchard  and 
vineyard  farms  were  fed  more  hay,  more  grain,  and  less  pasture  than 
those  on  dairy  and  field  crop  farms,  probably  owing  to  less  available 
pasturage.     The  weighted  averages  per  head  per  year  are: 


UNIVERSITY    OF    CALIFORNIA EXPERIMENT    STATION 


Hay 

Grain 

Pasture 


Dairy  and  field  crop 
group 


5.0  tons 
274  lbs. 
2.5  mos. 


Orchard  and  vineyard 
group 


6.0  tons 
435  lbs. 
1.5  mos. 


Cost  of  feed  per  head  per  year  based  on  current  prices  for  the 
period  under  study  (1922)  was  found  to  be  as  follows: 


Range  in  costs: 

High 

Low 

Average 

Frequency  (in  percentages  of  total  number 
of  farms): 

Less  than  $50 

$50  to  $75 

$75  to  $100 

$100  to  $125 

Over  $125 


Dairy  and 

field  crops 

group 


$295.00 
23.82 
89.80 


10% 

22 

30 

20 

18 


Orchard  and 

vineyard 

group 


$220.00 

64.00 

118.61 


4% 
39 
28 
29 


All  farms 


$95.75 


7% 
17 
33 

22 
21 


The  average  for  all  horses  per  head  per  year  amounted  to  $95.75. 


Feed  costs  for  the  period  were  as  follows 


Pa&ture,  per  horse  per  month 

Range 

Average 

Mostly 

Hay,  per  ton: 

Range 

Average 

Mostly 

Grain,  per  cwt.: 

Range 

Average 

Mostly 


Dairy  and  field  crops 
group 


$  .50-  $5.25 
2.50 
2.50 

$8.50-$28.00 

15.75 

15.00 


$1.15- 
1.75 
1.75 


$3.05 


Orchard  and  vineyard 
group 


$2.00- 
4.00 
3.00 


$6.00 


$12.00-$25.00 
17.50 
18.00 


$1.25- 
2.00 
1.75 


$2.62 


BULL.  401]         COgT    QF    W0RK    HORSES    ON    CALIFORNIA    FARMS 


!» 


Costs  of  feeds  vary  within  wide  limits,  being  influenced  by  kinds 
and  amounts  of  feeds  grown  in  the  locality,  by  demand,  quality,  and 
possible  markets,  and  by  costs  of  preparing  for  market,  of  transport 
and  of  selling. 

The  average  cost  of  feeds  per  head  per  year  was  found  to  be : 


TABLE  4 
Average  Cost  of  Feeds  per  Head  per  Year 


Dairy  and  field  crops  group 

Orchard  and  vineyard  group 

Amount 

Cost 

Amount 

Cost 

Pasture 

2.5  mos. 
5  tons 
274  lbs. 

$6.25 

78.75 

4.80 

1.5  mos. 
6  tons 
435  lbs. 

$6.00 

Hav 

105.00 

Grain 

7.61 

Totals 

$89.80 

$118.61 

Chores. 

Time  required  for  chores  is  variable.     On  the  187  farms,  the  time 
required  per  horse  per  day  varied  from  only  a  few  minutes  to  one  hour. 

Classified,  the  records  showed: 


TABLE  5 
Time  Spent  in  Chores  per  Horse  per  Day 


Dairy  and  field  crops  group 

Orchard  and  vineyard  group 

Range  in  time,  minutes 

Average  time,  minutes 

3-40 
12 

73^-60 
24 

Time 

Per  cent  of 
farms  in  group 

Per  cent  of 
horses  in  group 

Per  cent  of 
farms  in  group 

Per  cent  of 
horses  in  group 

Less  than  15  minutes 

67 

31 

2 

76 

23 

1 

13 
74 
13 

.  6 

15  to  30  minutes 

84 

Over  30  minutes 

10 

The  average  time  spent  in  chores  for  all  farms  averaged  15  minutes 
per  horse  per  day. 

The  rate  per  hour  for  time  spent  in  chores  ranged  from  18  cents  to 
46%  cents,  with  an  average  rate  of  30.9  cents.  The  majority  of 
operators  paid  from  25  to  30  cents  per  hour.  An  idea  of  the  range  in 
wages  paid  by  the  different  operators  can  be  gained  from  table  6. 


10 


UNIVERSITY    OF    CALIFORNIA EXPERIMENT    STATION 


TABLE   6 
Kate  of  Wages  Paid  for  Chores 


Rate  per  hour 

Dairy  and  field  crops 
group 

Orchard  and  vineyard 
group 

All  farms 

Cents 
18-25 

Percentage 
10 
42 
31 
17 

Percentage 

28 

24 

7 

41 

Percentage 
15 

26-30 

37 

31-35 

24 

36-46.5 

24 

Average  rate 

30.2c 

32.9c 

30.9c 

The  annual  cost  per  horse  for  chores  is  determined  by  the  amount 
of  time  spent  in  caring  for  the  horses  and  the  rate  of  wages.  The 
average  cost  for  the  dairy  and  field  crops  group  amounted  $22.50  per 
horse  per  year ;  for  the  orchard  and  vineyard  group,  $43.55 ;  and  for 
all  farms,  $27.80.  The  annual  cost  for  the  orchard  and  vineyard  group 
is  relatively  high  because  of  more  chore  work  incident  to  keeping  the 
horses  regularly  in  barns  and  corrals  and  because  of  the  somewhat 
higher  wage  rate,  although  the  extra  work  is  the  major  reason  for  the 
higher  annual  cost  per  horse  per  year. 

The  range  in  costs  per  horse  per  year  for  chores  varied  in  the  dairy 
and  field  crops  farms  from  a  minimum  of  $3.75  to  a  maximum  of 
$97.33,  the  cost  on  the  majority  of  farms  being  under  $25.  The  range 
for  the  orchard  and  vineyard  farms  was  from  $15.46  to  $146,  the  cost 
on  the  majority  of  farms  being  between  $20  and  $50. 

Taxes. 

The  amount  of  taxes  paid  was  obtained  from  the  county  records  or 
from  the  operators'  tax  statements.  Valuations  and  tax  rates  varied 
in  different  counties  and  on  different  farms  of  the  same  county  so  that 
considerable  range  exists  in  the  tax  rate. 

The  range  and  averages  paid  per  horse  per  year  are  here  shown : 


TABLE   7 
Taxes  Paid  on  Work  Horses  per  Head  per  Year 


Range 

Average 

Dairy  and  field  crops  group 

0-$3.69 

$.80-  6.00 

0-  6.00 

$1.42 

Orchard  and  vineyard  group 

All  farms                                       

2.21 
1.62 

BULL.  401]         C0ST   OF    WORK    HORSES   ON    CALIFORNIA   FARMS 


11 


Value  of  Horses. 

The   ranges  in  values  placed  upon  workhorses  are  set   forth  in 
table  8. 

TABLE  8 
Values  of  Work  Horses  per  Head — Average  for  Year 


Range 

Average 

Usual 

Dairy  and  field  crops  group 

Orchard  and  vineyard  group 

All  farms 

$38.33-8233.33 
37.50-  200.00 
37.50-  233.33 

$111.94 
102.79 
107.33 

$100-$150 
100-  150 
100-  150 

The  average  annual  interest  charge  per  head  at  6  per  cent 
amounts  to : 

Dairy  and  field  crops  farms $6.72 

Orchard  and  vineyard  farms 6  17 

All  farms 6.44 

Mortality. 

The  death  rate  as  a  factor  in  estimating  costs  of  horse  labor  was 
discounted  by  practically  one-fourth  of  the  187  operators  who  supplied 
data,  in  the  belief  that  mortality  was  not  sufficiently  important  to 
include.  This  was  particularly  true  of  men  having  but  one,  two,  or 
three  head  of  work  horses,  and  in  the  orchard  and  vineyard  group. 


TABLE  9 
Operators'  Estimates  of  Work  Horse  Mortality 


Rate  of  mortality 
per  year,  per  cent 

Classification  of  reports 

in  dairy  and  field  crops 

group 

Classification  of  reports 

in  orchard  and  vineyard 

group 

Total — all  farms 

0 

1 

45 

46 

2 

18 

18 

3 

11 

1 

12 

4 

2 

2 

5 

77 

77 

6 

3 

3 

7 

6 

6 

8 

6 

6 

10 

13 

13 

15 

2 

1 

3 

16 

1 

1 

140 

47 

187 

12 


UNIVERSITY    OF    CALIFORNIA EXPERIMENT    STATION 


Mortality  is  thus  estimated  by  operators  as  ranging  from  0  to  16%, 
with  an  average  mortality  of  6.6%  for  the  dairy  and  field  crops  group 
and  only  a  nominal  rate  for  the  orchard  and  vineyard  group.  The 
average  amounted  to  5.1%  or  at  the  rate  of  approximately  one  horse 
in  twenty  per  year. 


Measured  in  Money,  Mortality  per  Head,  Average 

Dairy  and  field  crops  farms $7.  39 

Orchard  and  vineyard  farms Nominal 

All  farms $5.47 


Depreciation. 

The  productive  life  of  a  work  horse  was  variously  estimated  by 
operators.  Table  10  contains  the  various  estimates  grouped  according 
to  type  of  farming  and  varying  ideas  of  profitable  life. 

TABLE  10 
Details  of  Findings  Concerning  Depreciation  of  Horses 


Estimated  useful  life  per 
horse 

Dairy  and  field  crop 
group 

Orchard  and  vineyard 
group 

All  farms 

20  years 

16  years 

5 

17 
20 

48 

41 

1 

7 

1 

6 

24 

5 

7 
4 

1 

11 
41 

14  years 

123^  years 

10  years 

25 
55 
45 

9  vears 

1 

8  years 

8 

7  years 

1 

140 

47 

187 

According  to  these  estimates  the  useful  life  of  a  horse  generally 
lies  between  10  and  16  years,  with  a  general  average  depreciation 
taken  from  all  records  as  follows : 


Average  depreciation 
in  percentage 

Average  depreciation 
in  dollars 

Dairy  and  field  crop  farms. .. 

8.48% 
7.01% 

$12.30 

Orchard  and  vineyard  farms.. 

13.13 

Weighted  average  for  all  farms 

8. 14% 

$12.92 

BULL.  401]         C0ST   OF   WORK    HORSES   ON    CALIFORNIA   FARMS 


13 


Cast  of  Shelter. 

A  charge  for  barn  space  occupied  by  horses,  storage  of  hay  for  their 
use,  and  protection  of  harness  is  made  up  of  interest  on  investment, 
depreciation,  upkeep,  taxes,  and  insurance.  The  cost  per  horse  was 
as  follows: 

TABLE  11 
Annual  Charge  of  Shelter  per  Animal 


Orchard  and  vineyard 
farms 


Range  in  charges: 

High 

Low 

Average 


Usual  charge. 


$20-$30 


The  average  shelter  charge  for  all  farms  amounted  to  $12.77  per 
animal  per  year. 


Charge  for  Equipment. 

The  charge  for  use  of  equipment,  such  as  harness,  collars,  halters, 
currycombs,  brushes,  barn  brooms,  shovels,  pitch  forks,  and  similar 
equipment  is  made  up  of  interest  upon  investment,  depreciation, 
upkeep,  taxes,  and  insurance.  The  findings  are  set  forth  in  the 
following  table : 

TABLE  12 

Annual  Charge  for  Use  of  Equipment  per  Animal 


Dairy  and  field  crops 
group 


Orchard  and  vineyard 
group 


Range  in  charges: 

High 

Low 

Average 


Usual  charges. 


$38.00 
1.14 
7.11 

$2.00-$10.00 


$25.32 
1.17 
5.35 

$2.00-$4.00 


The  average  equipment  charge  for  all  farms  amounted  to  $6.66  per 
animal  per  year. 


14 


UNIVERSITY    OF    CALIFORNIA EXPERIMENT    STATION 


Miscellaneous. 

Miscellaneous  charges  consisted  of  shoeing,  veterinary  services  and 
medicines.  The  cost  per  animal  per  year  was  not  large.  Of  the  140 
dairy  and  field  crop  farms,  32  reported  no  outlay  for  miscellaneous 
items  and,  similarly,  10  of  the  47  orchard  and  vineyard  group  had  no 
such  expenditure. 

The  range  and  average  for  the  two  groups  amounted  to : 

TABLE  13 

Outlay  per  Animal  per  Year  for  Miscellaneous  Expenditures 


Dairy  and  field  crops 
group 


Orchard  and  vineyard 
group 


Range  in  charges: 

High 

Low 

Average 

Most  frequent  charges 


$36.53 

0 

$5.05 

$1.00-$10.00 


$15.75 

0 

$4.87 

$5.00-$10  00 


The  average  miscellaneous  expenses  incurred  per  animal  per  year 
amounted  to  $5.01. 


Credits. 

Credits  are  made  up  of  the  net  value  of  colts  at  weaning  age  and 
the  value  of  manure  produced.  Few  farm  operators  reported  credits. 
Apparently  the  manure  output  is  not  fully  appreciated.  Of  the  140 
dairy  and  field  crop  farms,  only  8  reported  credits,  these  eight  rang- 
ing from  75  cents  to  $30,  and  averaging  for  the  eight  $9.37  per  horse. 
Only  one  of  the  47  orchard  and  vineyard  group  report  credit  of  $50. 
Because  of  the  possibility  of  an  average  being  misleading,  since  the 
reports  are  inadequate,  credits  are  ignored  in  the  calculations  of  costs 
hereinafter  set  forth. 


Total  Net  Cost  of  Work  Horses  per  Head. 

Bringing  together  the  various  items  set  forth  above  results  in  a 
figure  indicating  the  average  net  cost  for  work  horses  per  animal  per 
year.     The  findings  are  as  follows: 


BULL.  401]         COst   OF   WORK    HORSES   ON    CALIFORNIA   FARMS 


15 


TABLE  14 
Total  Net  Cost  per  Head  per  Year — Averages 


Dairy  and  field  crops 
group 

Orchard  and  vineyard 
group 

Number  of  horses 

665 

147 

Operating  costs: 

Feed .             

$89.80 
22.52 
1.42 
Nominal 

5.05 

6  72 
12.30 

7.39 
11.27 

7.11 

$118.61 

Chores                

43  55 

Taxes 

2  21 

Insurance 

Miscellaneous  (as  shoeing,  veterinary, 
etc.)  

Nominal 

4.87 

Overhead  charges: 

Interest  on  horse  value 

6.17 

Depreciation  per  horse 

13  13 

Mortalitv  per  horse. 

Nominal 

Shelter  per  horse 

17.25 

Equipment  per  horse.  .. 

5.35 

Gross  cost  per  year 

$163.58 
Nominal 

$211.14 

Credits 

Nominal 

The  cost  per  horse  per  year  amounted  to  an  average  of  $163.58  for 
the  animals  in  the  dairy  and  field  crops  group,  and  an  average  of 
$211.14  for  the  orchard  and  vineyard  group. 

Based  on  all  horses  included  in  this  study  the  average  net  cost  per 
horse  per  year  amounted  to  $172.19. 

Hours  of  Work  per  Year. 

A  wide  variation  exists  in  the  amount  that  horses  are  used  by 
different  operators.     This  is  shown  in  the  following  table : 


TABLE  15 
Hours  of  Use  per  Head  per  Year 


Dairy  and  field  crops  group 

Orchard  and  vineyard  group 

Range  in  hours  of  use 

454-3382 
1672 

468-2700 

Average  hours. 

1441 

Classification  by  number  of  hours 

Number  of 
farms 

Percentage 
of  group 

Number  of 
farms 

Percentage 
of  group 

Less  than  500 

2 
30 
40 
22 
33 
13 

1% 

21 
28 
16 
24 
10 

1 

6 
12 
24 

4 

500  to  1000 

2% 
13 

1000  to  1500 

1500  to  2000 

25 

2000  to  2500 

51 

2500  and  over 

9 

140 

100 

47 

100 

16 


UNIVERSITY    OF    CALIFORNIA EXPERIMENT    STATION 


The  average  annual  number  of  hours  of  use  per  horse  was  1527 
hours. 

The  number  of  hours  as  set  forth  above  is  only  approximate.  No 
accurate  records  were  available  to  show  the  number  of  hours  that 
these  work  horses  were  actually  in  use.  Operators  were,  however,  able 
to  state  with  a  fair  degree  of  certainty  the  periods  when  the  teams  were 
employed.  These  data,  therefore,  though  valuable  for  comparable 
purposes  are  not  absolute  criteria  of  actual  productive  use. 

Cost  per  Hour  for  Horse  Labor. 

The  cost  per  hour  of  use  varies  with  each  individual  ranch,  because 
methods  of  feeding,  costs  of  feed,  amount  of  chores,  wages  paid  for 
chores,  investment  in  horses,  barns,  and  equipment  are  variable,  and 
to  these  variations  is  also  to  be  added  the  difference  in  amount  of  work 
done  on  different  farms.  The  following  table  shows  the  variation  in 
costs  for  farms  in  each  group : 

TABLE  16 

Showing  Variation  in  Costs  per  Hour  tor  Horse  Labor  on  Different  Farms 
When  All  Factors  are  Taken  Into  Account 


Dairy  and  field  crops 
group 

Orchard  and  vineyard 
group 

Range  for  group 

4.9-40.7c 
10.06c 

7.2-32.3c 

Average 

14.42c 

Variation  of  costs: 

4  9  to  10c  per  horse  hour 

Frequency 

44% 

27 

15 

7 
7 

Frequency 
13% 
31 

10  to  15c  per  horse  hour 

15  to  20c  per  horse  hour  

30 

20  to  25c  per  horse  hour 

20 

25c  and  over  per  horse  hour 

6 

Average  yearly  cost  for  all  horses  amounted  to  11.03  cents  per 
hour  for  actual  time  worked. 

The  cost  per  hour  is  principally  affected  by  the  amount  of  produc- 
tive and  profitable  work  that  an  animal  does  during  the  year.  Feed 
costs,  chores  and  shoeing  are  reduced  somewhat  when  horses  are  not 
working,  but  charges  for  taxes,  interest,  depreciation,  mortality, 
shelter,  and  equipment  are  fixed  annual  charges.  Savings  when  horses 
are  idle  are  at  best  small  in  connection  with  necessary  outlay  for  feed, 
chores,  and  miscellaneous  items. 


BULL.  401]         CQST   OF    WORK    HORSES   ON    CALIFORNIA   FARMS 


17 


The  importance  of  this  point  is  shown  in  the  following  table,  using 
data  from  table  14  of  total  net  cost  per  head  per  year  averaged  for 
all  horses. 

TABLE  17 
Cost  Per  Hour  for  Horse  Labor  Based  on  Varying  Amount  of  Use 


Number  of  hours  of  work  per  year 

750 
1250 
1750 
2250 


Cost  per  hour  for  time  worked 

(Based  on  average  cost  for  all  horses 

included  in  study) 

22.9  cents 
13.7  cents 

9.8  cents 

7.7  cents 


Relative  Importance  of  Cost  Items. 

A  study  of  the  relative  importance  of  the  various  elements  of  costs, 
which  together  constitute  the  annual  cost  per  head  for  keeping  work 
horses,  serves  to  indicate  the  items  deserving  special  attention  in  con- 
sidering ways  of  economizing  in  horse  labor.  The  findings  for  the  812 
horses  covered  by  this  study  are  set  forth  in  table  18. 


TABLE  18 

Percentage  of  Each  Factor  Entering  Into  the  Gross  Annual  Cost  of 
Keeping  Work  Horses — Average  for  812  Horses 


Dairy  and  field  crops 
group 

Orchard  and  vineyard 
group 

Feed 

Chores 

Taxes  and  miscellaneous 

55.1% 
13.8 

3.9 

4.1 

7.5 

4.5 

6.8 

4.3 

56.4% 
20.6 
3.3 

Interest 

Depreciation 

Mortality 

2.9 

6.2 

Shelter 

8.1 

Equipment 

2.5 

100.0 

100.0 

The  significance  of  the  data  presented  above  is  that  feed  and  chores 
together  constitute  from  two-thirds  to  three-fourths  of  the  total  cost 
of  keeping  work  horses.  Fortunately,  attention  to  proper  and  eco- 
nomical feeding  and  efficient  use  of  labor  is  within  control  of  each 
individual  operator. 


18 


UNIVERSITY    OF    CALIFORNIA EXPERIMENT    STATION 


Items  such  as  taxes,  interest,  shelter,  and  equipment  are  largely 
fixed.  Study  of  the  data  shows,  however,  that  material  economies  can 
be  obtained  by  keeping  contemplated  investments  in  horses,  shelter, 
and  equipment  at  as  low  a  level  as  is  consistent  with  quality. 

The  depreciation  and  mortality  factors  are  to  some  extent  under 
the  control  of  the  operator,  and  lengthening  the  productive  life  of  a 
work  horse  and  reducing  mortality  will  have  its  effect  upon  annual 
costs  of  horse  labor. 

UNIT  FACTORS 

Costs  in  dollars  are  of  only  passing  interest  since  current  figures 
are  not  likely  to  remain  stationary.  The  price  of  feeds — the  largest 
single  item  entering  into  these  costs — is  particularly  prone  to  vary 
from  year  to  year  or  during  a  single  season,  and  in  different  localities. 
Unit  factors,  meaning  basic  items  measured  whenever  possible  in  terms 
of  time  and  quantity,  provide  a  formula  for  future  calculations  which 
will  apply  as  long  as  present  procedure  in  handling  horses  is  followed. 

Unit  factors  for  workhorses,  drawn  from  the  data  collected  from  the 
two  groups  comprising  these  187  farms,  is  summarized  in  the  following 
table.  Data  are  given  in  terms  of  money  only  when  no  other  measure 
is  available. 

TABLE  19 

Unit  Factors  Involved  in  the  Cost  of  Keeping  Work  Horses,  per  Animal 

per  Year 


Cost  of 


Feed: 

Hay 

Grain 

Pasture 

Chores 

Taxes 

Average  value  per  head 

Interest  on  investment  in  horse 

Mortality 

Depreciation 

Shelter 

Equipment 

Miscellaneous 

Credits 


Dairy  and  field 
crops  group 


5  tons 
274  lbs. 
2.5  mos. 
12  minutes 

$1.42 

$111.94 

$6.72 

6.6% 

8.55% 

$11.27 

$7.11 

$5.05 


Nominal 


Orchard  and 
vineyard  group 


6  tons 
435  lbs. 
1.5  mos. 
24  minutes 

$2.21 

$102.79 

$6.17 

Nominal 

6.97% 

$17.25- 

$5.35 

$4.87 


Nominal 


All  farms 


5.4  tons 
308  lbs. 
2  mos. 
15  minutes 

$1.62 

$107.33 

$6.44 

5.1% 

8. 15% 

$12.77 

$6/66 

$5.01 


Nominal 


Bull.  401]         C0St    OF    WORK    HORSES   ON    CALIFORNIA    FARMS 


19 


EFFECT  OF   COST  OF    FEED 

The  average  annual  feed  bill  per  horse  amounted  to  $95.75,  the  costs 
on  individual  farms  ranging  from  $23.82  to  $295.  Low  costs  can  be 
attributed  to  pasturing  horses  when  idle  or  to  special  conditions  mak- 
ing for  cheap  feed.  The  high  costs  are  largely  due  to  wastage  of  feed 
or  to  excessive  prices  paid  for  feed.  Of  the  ranches  studied  in  the 
dairy  and  field  crops  group,  23  reported  annual  feed  costs  amounting 
to  over  $125  per  horse  so  that  the  average  feed  cost  of  these  was  7.8 
cents  per  work  hour  against  a  group  average  figure  of  5.6  cents  per 
hour. 

The  importance  of  keeping  down  feed  costs  is  shown  by  the  follow-, 
ing  table.  Here  are  presented  the  actual  costs  on  five  ranches  which 
had  the  highest  annual  feed  cost,  in  comparison  with  average  costs  of 
all  ranches  in  the  dairy  and  field  crop  groups — $89.80. 

TABLE  20 
Effect  of  Feed  Costs  Upon  Cost  per  Hour  of  Work 


Number 
of  hours 
worked 

Actual 

Under  average  feed  cost 

Ranch 
No. 

Feed  cost 

Total 
cost  per 
hour  of 

work 

Feed  cost 

Total 

cost  per 
hour  of 
work 

Savin  g 
per  hour 

Annual 

Per  hour 

Annual 

Per  hour 

of  work 

1 

1799 

$295.00 

16.4c 

22.2c 

$92.09 

5.1c 

10.9c 

11.3c 

2 

1500 

178.20 

11.9 

16.4 

92.09 

6.1 

10.6 

5.8 

3 

2660 

176.00 

6.6 

10.6 

92.09 

3.5 

7.5 

3.1 

4 

2808 

173.50 

6.2 

11.4 

92  09 

3.3 

8.5 

2.9 

5 

832 

168.00 

20.2 

25.3 

92.09 

11.1 

16.2 

9.1 

This  table  serves  to  illustrate  another  fact,  namely,  that  the  fewer 
hours  per  year  that  the  horse  works,  the  more  important  it  is  to  keep 
down  the  feed  cost.  Farms  Nos.  4  and  5  have  approximately  the  same 
annual  feed  cost,  yet  farm  No.  4,  where  the  horses  work  an  average  of 
2808  hours,  would  have  made  a  saving  of  only  2.9  cents  per  hour  had 
the  feed  bill  been  that  of  the  average  ranch,  whereas  on  farm  No.  5, 
where  the  horses  worked  only  832  hours,  the  saving  would  have  been 
9.1  cents  per  hour. 


20  UNIVERSITY    OF    CALIFORNIA EXPERIMENT    STATION 


SUMMARY 

A  study  of  the  cost  of  keeping  812  work  horses  on  187  California 
farms  indicated  that  under  the  conditions  existing  at  the  time  (for 
year  1922)  the  average  cost  per  animal  per  year  amounted  to  $172.19. 

The  average  cost  of  maintaining  horses  on  orchard  and  vineyard, 
farms  was  found  to  be  higher  than  on  dairy  and  field  crop  farms,  being 
$211.14  for  the  former  group  and  $163.58  for  the  latter  group.  Of  the 
various  items  making  up  the  cost  of  maintaining  work  horses,  feed  and 
chores  are  the  two  largest  single  costs.  These  amounted  to  $112.32 
(or  68.9%)  for  the  dairy  and  field  crop  group,  $162.16  (or  77%)  for 
the  orchard  and  vineyard  group. 

The  majority  of  operators  fed  hay  only,  at  an  average  rate  of  6  tons 
per  head  per  year.  When  grain  was  fed  the  amount  averaged  780  lbs., 
with  a  reduction  of  but  one-tenth  of  a  ton  of  hay.  An  average  of  five 
months  of  pasture  replaced  1.7  tons  of  hay. 

Prices  for  the  period  of  study  mostly  ranged  between  $15  to  $18 
per  ton  of  hay,  $2.50  to  $3  per  horse-month  for  pasture,  $1.75  per  100 
pounds  for  grain,  30.9  cents  per  hour  for  choring,  $1.62  for  taxes, 
$5.01  for  shoeing,  veterinary  and  similar  miscellaneous  minor  items, 
$12.77  for  shelter  and  $6.66  for  use  of  equipment. 

Credits  (for  colts  and  manure)  were  relatively  small.  The  value 
of  the  manure  is  apparently  not  appreciated  by  horse  owners. 

Mortality  averaged  5.1  per  cent,  depreciation  8.14  per  cent. 

The  number  of  hours  that  horses  are  used  per  year  is  the  greatest 
single  factor  affecting  cost  per  hour.  Yearly  use  was  found  to  range 
from  454  to  3382  hours  per  horse,  with  a  general  average  of  1527  hours. 

The  average  cost  per  horse-hour  for  time  actually  worked  amounted 
to  11.03  cents,  or  approximately  $1  per  day  for  a  9-hour  day. 

ACKNOWLEDGMENT 

In  addition  to  the  data  collected  by  fieldmen  in  connection  with  a 
study  of  the  cost  of  producing  milk  on  California  dairy  farms,*  47 
records,  collected  by  Mr.  W.  L.  Jackson,  and  constituting  the  orchard 
and  vineyard  group  have  been  used.  Mr.  L.  E.  Haseltine  gave  sub- 
stantial assistance  in  connection  with  compiling,  summarizing,  and 
analyzing  the  various  records. 


Published  in  University  of  California  Experiment  Station  Bulletin  372. 

8m-4,'26 


BULL.  403]  FARM-ACCOUNTING   ASSOCIATIONS  39 

Nanneson,  Ludvig 

1916.  Rakenskapresultat  fran  svenska  jordbruk.  1.  Bokforingsaret  1914- 
1915.  Meddelanden  fran  Kungl.  Lantbruksstyrelsen  201  (5  ar 
1916),  1-85.   Aktiebolaget  Skansa  Centraltryckeriet.    Lund,  Sweden. 

1918.  Ibid.    2    Bokforingsaret     1915-1916  ....  206     (5     ar     1917),     1-86. 

Aktiebolaget  Skanska  Centraltryckeriet.     Lund,  Sweden. 

1919.  Ibid.  .    3    Bokforingsaret    1916-1917  ....  217    (3    ar    1919),    1-85. 

Rohr's  Boktryckeri.     Malmo,  Sweden. 

1920.  Ibid.  4  Bokforingsaret  1917-1918  ....  224  (5  ar  1920),  1-71.  Rohr's 

Boktryckeri.     Malmo,  Sweden. 

1921.  Ibid.  5  Bokforingsaret  1918-1919  ....  234  (5  ar  1921),  1-94.    For- 

lagsaktiebolagets  i  Malmo  Boktryckeri.     Malmo,  Sweden. 

1922.  Ibid.    6    Bokforingsaret    1919-1920  ....  241     (7    ar    1922),    1-111. 

Rohr  's  Boktryckeri.     Malmo,  Sweden. 

1923.  Ibid.    7    Bokforingsaret    1920-1921  ....  246     (5    ar    1923),    1-111. 

Rohr's  Boktryckerei.     Malmo,  Sweden. 

1924.  Ibid.    8  Bokforingsaret  1921-1922  ....  251   (4  ar  1924),  1-82.    Rohr's 

Boktryckeri.     Malmo,   Sweden. 
1924.     Jordbruksekonomi,    1-135.       C.    E.    Fritzes    Bokforlags    Aktiebolag. 
Stockholm,  Sweden. 

OVERGAARD,   J.    C. 

1918.  Unders0gelser  over  Landbrugets  Driftsforhold  1  Nogle  Regnskabs- 
resultater  fra  danske  Landbrug  i  Aaret  1916-1917.  1-47.  Konrad 
J0rgensens  Bogtrykkeri.     Kolding,  Denmark. 

Pedersen,  M. 

1916.     Landbrugets   Rentabilitet.      1-308.      Copenhagen. 

Sunila,  J.  E. 

1916.  Undersokning  af  landthushallningens  i  Finland  rentabilitet  1. 
Rakenskapsaret  1913-1914.  Landtbruksstyrelsens  Meddelanden 
109;  Landtbruksekonomiska  Afdelningens  Publikation  5:  1-214. 
Kejserliga  Senatens  Tryckeri.     Helsingfors. 

1918.  Ibid.    3  .  .  .  .  1914-1915.       Lantbruksstyrelsens    Meddelanden     118; 

Lantbruksekonomiska   Avdelningens   Publikation   8:    1-205.      Fin- 
lands  Senats  Tryckeri.     Helsingfors. 

1919.  Ibid.     4  .  .  .  .  1915-1916  ....  128  ....  11:      1-224.       Statsradets 

Tryckeri.   Helsingfors. 

1920.  Ibid.     5  .  .  .  .  1916-1917  ....  133  ....  12:      1-211.       Statsradets 

Tryckeri.     Helsingfors. 
1922.     Ibid.     8  .  .  .  .  1919-1920  ....  142  ....  15:      1-50.       Statsradets 
Tryckeri.     Helsingfors. 

IJDVALGET   FOR   DET    LAND0JONOMISKE    DriFTSBUREAU    (DANMARK) 

1916.  Plan  og  Regler  for  Landbrugs-Regnskabsf0ringen.  Konrad  J0rgen- 
sens  Bogtrykkeri.     Kolding. 


